Financial Data and Key Metrics Changes - Q3 2025 revenue reached $1.049 billion, growing 17% year-over-year, with a 16% increase on a constant currency basis [29][30] - Adjusted EBITDA for Q3 was $306 million, representing a margin of 29%, with a 170 basis point expansion year-over-year [32] - Free cash flow for Q3 was $318 million, indicating a highly cash-generative business model [32] Business Line Data and Key Metrics Changes - Outbound clicks to advertisers increased by 40% year-over-year in Q3, demonstrating enhanced engagement [8] - Ad impressions grew by 54% in Q3, while ad pricing declined by 24% year-over-year, primarily due to a shift towards lower-priced international markets [30] - Performance+ campaigns have shown a 24% higher conversion lift for retail advertisers compared to traditional campaigns [19][76] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, marking a 12% increase year-over-year, with significant growth in Gen Z users [6][28] - U.S. and Canada MAUs grew to 103 million, up 4%, while Europe and the rest of the world saw MAUs of 150 million (up 8%) and 347 million (up 16%) respectively [28] - Revenue from the U.S. and Canada was $786 million (up 9%), Europe generated $193 million (up 41%), and the rest of the world brought in $70 million (up 66%) [29] Company Strategy and Development Direction - The company is focused on becoming an AI-powered visual-first shopping assistant, enhancing user experience through proactive AI recommendations [4][10] - There is a clear strategy to deepen engagement with users and expand monetization opportunities in international markets, which are currently under-monetized [9][22] - The introduction of Pinterest Assistant aims to enhance the discovery journey and improve user engagement through voice-activated interactions [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to high teens revenue growth targets over the long term, despite challenges in the U.S. retail sector due to tariff-related pressures [49][55] - The company is optimistic about the potential of AI-driven optimization in advertising, which is expected to enhance performance and expand market opportunities [56][59] - Management highlighted the importance of user engagement metrics, noting that clicks to advertisers have increased significantly, outpacing revenue growth [60] Other Important Information - The company has allocated $199 million towards share repurchases to mitigate dilution from employee stock-based compensation [33] - The international monetization gap is being addressed, with shopping ad revenue in international markets growing significantly [26][25] - The company is exploring new sources of demand through programmatic advertising and partnerships, such as with Magnite [71] Q&A Session Summary Question: Future of e-commerce and Pinterest's strategy - Management emphasized the proactive nature of Pinterest's AI, which anticipates user preferences without explicit prompts, enhancing user engagement [42][45] Question: Impact of tariffs on ad spend - Management noted that while there was a pullback in ad spend from U.S. retailers, there are still areas of momentum in emerging verticals and smaller advertisers [48][50] Question: Digital ad environment and UCAN performance - Management reported consistent revenue growth despite challenges in the UCAN market, with a focus on expanding AI-driven advertising solutions [55][56] Question: AI-generated content strategy - Management clarified that while they embrace AI-generated content, they prioritize content quality and user choice in what they see [63][68] Question: Relationship with Magnite and new demand sources - Management stated that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [71][72] Question: SMB and mid-market opportunities - Management highlighted the strong performance of Performance+ campaigns among smaller and mid-market advertisers, indicating significant growth potential in this segment [76]

Core Insights - The social-media platform anticipates a slowdown in revenue growth for the fourth quarter, projecting an increase of 14% to 16% compared to a 17% growth in the third quarter [1] Revenue Performance - The company recorded a revenue growth of 17% in the third quarter [1] - The expected revenue growth for the fourth quarter is lower than the previous quarter's performance, indicating a potential trend shift [1]

Financial Data and Key Metrics Changes - In Q3 2025, Pinterest reported revenue of $1.049 billion, representing a 17% year-over-year growth [6][30] - Adjusted EBITDA for Q3 was $306 million, with a margin of 29%, reflecting a 170 basis point expansion compared to the previous year [33] - Free cash flow for Q3 was $318 million, indicating a strong cash-generative nature of the business [33] Business Line Data and Key Metrics Changes - Outbound clicks to advertisers increased by 40% year-over-year in Q3, demonstrating enhanced engagement with advertisers [8] - The number of unique shopping SKUs with paid ad impressions grew over 100% year-over-year, driven by the adoption of ROAS bidding [23][52] - Pinterest Performance Plus campaigns have shown a 24% higher conversion lift compared to traditional campaigns, particularly benefiting smaller and mid-market advertisers [63] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, growing 12% year-over-year, with significant growth in the U.S. and Canada, Europe, and the rest of the world [5][29] - Revenue from the U.S. and Canada was $786 million, growing 9%, while Europe saw a 41% increase to $193 million, and the rest of the world grew 66% to $70 million [30] - International markets represented 25% of global revenue, indicating significant growth potential in these regions [25] Company Strategy and Development Direction - Pinterest is transforming into an AI-powered visual-first shopping assistant, enhancing user engagement and advertiser partnerships [4][10] - The company is focusing on expanding its share of wallet with mid-market and smaller advertisers while also increasing monetization in international markets [9][28] - New features like Pinterest Assistant and multimodal search are being developed to enhance user experience and drive engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to high-teens revenue growth targets over the medium to long term, despite some ad spend moderation in the U.S. [46][49] - The company is optimistic about the potential of AI-driven optimization and the ongoing rollout of Performance Plus solutions [52][53] - Management noted that the digital ad environment remains challenging, particularly for larger retailers, but sees opportunities in emerging verticals and smaller advertisers [49][51] Other Important Information - Pinterest's international monetization is still in early stages, with significant room for growth as the company scales proven strategies from the U.S. [25][28] - The company is actively investing in AI and product innovation to enhance user experience and drive advertiser performance [33][36] Q&A Session All Questions and Answers Question: Future of e-commerce and Pinterest's strategy - Management highlighted Pinterest's proactive AI-driven approach, which anticipates user preferences and enhances engagement, positioning the platform uniquely in the e-commerce landscape [39][40] Question: Digital ad environment and UCAN performance - Management noted that despite a challenging ad environment, Pinterest achieved 17% revenue growth, driven by strong performance in emerging verticals and smaller advertisers [49][50] Question: Relationship with Magnite and new demand sources - Management clarified that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [60][61] Question: SMB and mid-market opportunity - Management emphasized the significant potential in the SMB and mid-market segments, with Performance Plus campaigns driving higher conversion rates and revenue growth [63]

Core Insights - Pinterest's stock has experienced a decline of over 16% due to a weaker revenue forecast for the upcoming holiday quarter, which is typically the company's strongest period [1] Group 1: Company Performance - The revenue forecast for Pinterest has been downgraded, indicating potential challenges in achieving expected financial performance during the holiday season [1] - The holiday quarter is traditionally a critical time for Pinterest, as it usually sees increased shopping activity [1] Group 2: Market Reaction - The significant drop in stock price reflects investor concerns regarding the company's ability to capitalize on the holiday shopping season [1]

Q3 2025 Earnings Report © 2025 Pinterest. All rights reserved. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) ...

Financial Performance - Revenue for the three months ended September 30, 2025, was $1,049.2 million, representing a 17% increase compared to the same period in 2024[89] - Adjusted EBITDA for the three months ended September 30, 2025, was $306.1 million, up from $246.99 million in the same period of 2024[110] - Net income for the three months ended September 30, 2025, was $92.1 million, compared to $30.6 million in the same period of 2024[110] - Revenue for the three months ended September 30, 2025, increased by 17% to $1,049,205 thousand compared to $898,373 thousand for the same period in 2024[123] - Adjusted EBITDA for the three months ended September 30, 2025, was $306,051 thousand, up from $246,990 thousand in 2024, representing a 24% increase[121] - Net income for the three months ended September 30, 2025, was $92,108 thousand, compared to $30,556 thousand in 2024, reflecting a significant increase[121] - Free cash flow for the nine months ended September 30, 2025, was $871.5 million, compared to $689.8 million in 2024[112] - Adjusted EBITDA for the nine months ended September 30, 2025, was $728.5 million, reflecting a 30% increase from $561.4 million in the same period of 2024[134] User Metrics - Monthly active users (MAUs) reached 600 million, an increase of 12% year-over-year[89] - The number of average monthly active users (MAUs) increased by 12% for the three months ended September 30, 2025, compared to the same period in 2024[123] Revenue Breakdown - Average revenue per user (ARPU) globally was $1.78, a 5% increase from the previous year[100] - ARPU in the U.S. and Canada was $7.64, an increase of 5%, while Europe saw a 31% increase to $1.31, and Rest of World increased by 44% to $0.21[100] - Revenue from Europe increased by 41% to $193.2 million for the three months ended September 30, 2025, compared to the same period in 2024[124] Expenses - Research and development expenses for the three months ended September 30, 2025, increased by 14% to $371,253 thousand from $326,679 thousand in 2024[126] - Sales and marketing expenses for the three months ended September 30, 2025, rose by 19% to $296,679 thousand compared to $249,033 thousand in 2024[127] - Cost of revenue for the three months ended September 30, 2025, was $212,325 thousand, an increase of 13% from $187,453 thousand in 2024[125] - General and administrative expenses decreased by 22% to $110,432 thousand for the three months ended September 30, 2025, compared to $141,124 thousand in 2024[128] - Share-based compensation expense was $235.1 million, an increase of $27.2 million compared to the same period in 2024[89] Cash and Investments - Cash, cash equivalents, and marketable securities totaled $2,671.3 million as of September 30, 2025[89] - As of September 30, 2025, the company had $2,671.3 million in cash, cash equivalents, and marketable securities, with $190.5 million held by foreign subsidiaries[135] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $893.1 million, an increase of $182.5 million compared to $710.6 million in 2024[145] Share Repurchase and Credit Facilities - The company repurchased 12,180,904 shares of Class A common stock for an aggregate purchase price of $427.0 million at an average price of $35.06 per share during the nine months ended September 30, 2025[143] - The company amended its revolving credit facility in October 2023, increasing the aggregate commitment to $500.0 million[137] - The company is in compliance with all covenants under the revolving credit facility as of September 30, 2025[140] - The company anticipates that existing cash and available credit will be sufficient to meet working capital and capital expenditure needs over the next 12 months[141] Other Financial Information - Interest income (expense), net for the three months ended September 30, 2025, was $28,536 thousand, a decrease of 12% from $32,477 thousand in 2024[129] - The company has not engaged in hedging activities related to foreign currency exchange risk, although it may consider doing so in the future[156] - The company continues to invest in relevance and personalization, contributing to the growth in MAUs[94]

Financial Performance - Q3 2025 revenue reached $1,049 million, representing a 17% year-over-year growth and 16% growth on a constant currency basis[2] - GAAP net income for Q3 2025 was $92 million, a 201% increase compared to $30.6 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $306 million, reflecting a 24% increase from $247 million in Q3 2024[3] - Free cash flow for Q3 2025 was $318 million, up 30% from $244 million in Q3 2024[3] - Revenue for Q3 2025 reached $1,049,205, an increase of 16.8% compared to $898,373 in Q3 2024[21] - Net income for Q3 2025 was $92,108, compared to $30,556 in Q3 2024, representing a growth of 201.5%[21] - Non-GAAP net income rose to $262.925 million in Q3 2025 compared to $223.298 million in Q3 2024, reflecting a 17.7% increase[27] - Adjusted EBITDA for Q3 2025 reached $306.051 million, up from $246.990 million in Q3 2024, indicating a 23.8% growth[25] - Free cash flow improved to $318.421 million in Q3 2025, compared to $244.111 million in Q3 2024, a 30.4% increase[27] - Total costs and expenses were $990.689 million in Q3 2025, up from $904.289 million in Q3 2024, an increase of 9.5%[25] User Metrics - Global monthly active users (MAUs) increased by 12% year-over-year to 600 million[3] - Average revenue per user (ARPU) globally increased by 5% to $1.78, with ARPU in Europe rising by 31% to $1.31[4] - Average Monthly Active Users (MAUs) are defined as authenticated users interacting with Pinterest at least once in a 30-day period, with ongoing improvements in user base estimation methodologies[16] Revenue Breakdown - Revenue from the U.S. and Canada was $786 million, a 9% increase year-over-year, while revenue from Europe grew by 41% to $193 million[4] - Revenue from the Rest of World segment surged by 66% to $70 million[4] Future Projections - For Q4 2025, the company expects revenue to be between $1,313 million and $1,338 million, indicating a year-over-year growth of 14% to 16%[6] - Q4 2025 Adjusted EBITDA is projected to be in the range of $533 million to $558 million[6] Balance Sheet and Cash Flow - Total current assets increased to $3,565,418 as of September 30, 2025, up from $3,484,707 as of December 31, 2024[19] - Total liabilities rose to $690,442 as of September 30, 2025, compared to $591,506 as of December 31, 2024[19] - Operating cash flow for the nine months ended September 30, 2025, was $893,051, an increase from $710,599 in the same period of 2024[23] - Cash and cash equivalents at the end of Q3 2025 were $1,137,200, compared to $1,040,402 at the end of Q3 2024[23] - The total stockholders' equity increased to $4,824,968 as of September 30, 2025, from $4,751,154 as of December 31, 2024[19] Expenses and Compensation - Research and development expenses for Q3 2025 were $371,253, up from $326,679 in Q3 2024, indicating a focus on innovation[21] - Total share-based compensation increased to $235.136 million in Q3 2025 from $207.976 million in Q3 2024, representing a 13.1% increase[25] Earnings Per Share - The company reported a diluted net income per share of $0.13 for Q3 2025, compared to $0.04 for Q3 2024[21] - Non-GAAP net income per share increased to $0.38 in Q3 2025 from $0.32 in Q3 2024, a growth of 18.8%[27] - Basic weighted-average shares used in computing net income per share were 677.819 million in Q3 2025, slightly down from 678.496 million in Q3 2024[27] Legal and Accounting Adjustments - The company recorded a legal settlement expense of $34.7 million in Q3 2024, which was excluded from Adjusted EBITDA due to its non-recurring nature[27] - The company began excluding payroll tax expense related to share-based compensation from Adjusted EBITDA and non-GAAP net income starting Q4 2024[27]

Core Insights - Pinterest's shares dropped by as much as 15% following the release of third-quarter financial results that fell short of earnings expectations and provided weak guidance [1][2] Financial Performance - Third-quarter sales increased by 17% year-over-year, with net income reaching $92.11 million, a 201% increase from $30.56 million in the same period last year [1] - The company projected fourth-quarter revenue between $1.31 billion and $1.34 billion, with a midpoint of $1.325 billion, which is below Wall Street's expectation of $1.34 billion [2] - Adjusted EBITDA for the third quarter was $306 million, exceeding estimates of $295 million [3] - U.S. and Canada sales for the third quarter were $786 million, lower than the expected $799 million [3] - Global average revenue per user for the third quarter was $1.78, slightly below the projected $1.79 [3] User Metrics - Pinterest reported 600 million global monthly active users in the third quarter, surpassing the projected 590 million [2] - This figure represents an increase from 578 million monthly active users reported in the second quarter [2] Strategic Initiatives - The CEO highlighted that investments in AI and product innovation are yielding positive results, positioning Pinterest as a leader in visual search and an AI-powered shopping assistant for consumers [4]

Core Viewpoint - Pinterest's fourth-quarter revenue forecast is slightly below Wall Street estimates, indicating strong competition from larger platforms like Meta during the holiday shopping season [1] Group 1: Company Performance - Pinterest's revenue forecast for the fourth quarter is projected to be lower than expected, reflecting challenges in maintaining market share against larger competitors [1] - The competitive landscape is intensifying, particularly with the holiday shopping season approaching, which is critical for advertising revenue [1] Group 2: Industry Competition - The presence of larger platforms such as Meta is significantly impacting Pinterest's performance, highlighting the fierce competition in the digital advertising space [1] - The holiday shopping season is expected to be a crucial period for all players in the industry, with companies vying for advertising dollars [1]

Core Insights - Pinterest reported a strong Q3 2025 with a revenue of $1,049 million, reflecting a 17% year-over-year growth and a 16% increase on a constant currency basis [1][3] - The platform achieved an all-time high of 600 million global monthly active users (MAUs), marking a 12% increase year-over-year [1][3] Financial Performance - Revenue for Q3 2025 was $1,049 million, up from $898 million in Q3 2024, representing a 17% increase [2][3] - Net income reached $92 million, a significant increase of 201% compared to $30.6 million in the same quarter last year [2][3] - Non-GAAP net income was $262.9 million, up 18% from $223.3 million in Q3 2024 [2][3] - Adjusted EBITDA for the quarter was $306 million, a 24% increase from $247 million in Q3 2024 [2][3] User Metrics - Global MAUs increased to 600 million, up from 537 million in Q3 2024, representing a 12% growth [3][4] - Average revenue per user (ARPU) globally was $1.78, a 5% increase from $1.70 in Q3 2024 [4] Geographic Revenue Breakdown - Revenue from the U.S. and Canada was $786 million, a 9% increase from $719 million in Q3 2024 [4] - Revenue from Europe surged by 41% to $193 million, up from $137 million [4] - Revenue from the Rest of the World saw a remarkable 66% increase, reaching $70 million compared to $42 million in Q3 2024 [4] Cash Flow and Operating Activities - Net cash provided by operating activities was $321.7 million, a 30% increase from $248 million in Q3 2024 [2][3] - Free cash flow for the quarter was $318.4 million, also a 30% increase from $244 million in the same period last year [2][3] Future Guidance - For Q4 2025, Pinterest expects revenue to be between $1,313 million and $1,338 million, indicating a year-over-year growth of 14% to 16% [5] - The company anticipates Q4 2025 Adjusted EBITDA to range from $533 million to $558 million [5]